DVV / MajescorDunsmuir and Majescor JV partners with Firestone
2004-06-03 09:22 ET - News Release
Also News Release (C-MAJ) Majescor Resources Inc
Mr. Art Ettlinger of Dunsmuir Ventures reports
U.S DIAMOND EXPLORATION EXPANDED WITH FIRESTONE DIAMONDS PLC
American Diamonds Inc. has entered into a letter of intent with Firestone Diamonds PLC to explore for kimberlitic diamond deposits in the United States. Firestone is a United Kingdom-based diamond producer with operations in South Africa, and has been exploring for kimberlitic diamond deposits in the United States for the past 2.5 years. As a result of this work, Firestone and its consultant, Howard Coopersmith, have identified several areas containing anomalous kimberlitic indicator minerals within two adjacent states not known to be previously explored for kimberlite. These two states lie within a project area of five states covered by the agreement. Based on this work several specific areas for immediate detailed heavy mineral sampling for kimberlite indicators have been identified.
Under the letter of intent with Firestone, ADI has the right to earn up to a 60-per-cent interest in stages of any properties acquired within the project area. To exercise this right, ADI must pay outstanding obligations owed by Firestone of $60,012.23 (U.S.) and incur exploration expenditures of $140,000 (U.S.) in year one, $205,000 (U.S.) in year two, $345,000 (U.S.) in year three and $27,500 (U.S.) in year four of the agreement. ADI will become 30 per cent vested after satisfying the expenditures for year two and 50 per cent vested after year three. Firestone will be required to share its pro rata cost of expenditures after ADI becomes 60 per cent vested in the project.
American Diamonds Inc.
American Diamonds Inc. (ADI) is a Delaware-registered corporation jointly owned by Dunsmuir Ventures Ltd. and Majescor Resources Inc., with Dunsmuir acting as operator. ADI was recently formed as the operating entity for the United States Diamond Alliance between these two companies and will be the operator of the joint venture with Firestone. ADI will also continue with the continuing exploration for non-traditional diamond deposits initiated in 2003 by the USDA.
Firestone work history
Prospective regions in the United States have been selected based upon favourable basement geology and structural elements, as well as the relatively unexplored nature and ease of exploration. Heavy mineral sampling was initiated in the fall of 2001 and continues seasonally, resulting in the analysis of 768 samples to date. In excess of one-third of these samples are positive for kimberlite indicator minerals (KIM), including peridotitic garnet, eclogitic garnet, megacrystic garnet, chrome diopside, Cr-rich chromite and picroilmenite. Microprobe analyses confirm the deep-seated nature of these minerals, including some originating at depths within the diamond stability field. Trace element analyses indicate a cool geothermal gradient.
Specific targets have been identified in the more advanced areas. These targets are based on increased numbers of KIMs (locally in excess of 1,000 per sample), some angular (proximal) KIMs, increased numbers of chrome diopside (proximal), and surface structural and topographic anomalies. For these specific targets, high-density indicator mineral sampling is being planned for this summer, as well as continued regional sampling to further develop the regional anomalies identified by Firestone and Coopersmith.
Regional joint venture
In addition to the five-state project area, the letter of intent with Firestone also outlines a second joint venture to explore for kimberlites elsewhere in the United States. Under this program, Mr. Coopersmith will provide exclusive access to his database and work on diamond exploration to the joint venture. Mr. Coopersmith has been active in diamond exploration in the United States since the mid-1970s, and is responsible for the discovery of numerous kimberlites in Colorado and Wyoming, including the Kelsey Lake diamond mine in the state line district of Colorado.
Dunsmuir and Majescor are excited to have this opportunity to expand their search in the United States for kimberlite-hosted diamond deposits. The United States is the largest market in the world for gem diamonds and a home-grown supply of rough gems would be enthusiastically received. The partners recognize that significant new geologic information and improved exploration techniques have come to light with respect to diamonds over the past decade. By coupling these observations with the groundwork provided by Coopersmith and Firestone, the partners believe the United States provides highly fertile ground for new diamond discoveries. For further information, please contact Art Ettlinger at 604-681-6311 or Andre Audet at 613-241-2332.